GBP/USD Price Forecast – British pound relatively flat

The British pound initially tried to rally during trading on Wednesday but rolled over slightly as we continue to pull back from the lofty levels. Ultimately, the market has seen a massive surge higher, so this pullback may be necessary.
Christopher Lewis
GBP/USD daily chart, January 31, 2019

The British pound initially tried to rally during trading on Wednesday, but then rolled over to show signs of exhaustion again towards the 1.31 handle. With the Federal Reserve having a press conference late in the day on Wednesday, obviously, a lot of things can change. However, it appears that the British pound is simply trying to relax from the bullish move that has happened.

The Brexit situation continues to cause a lot of issues, as the back and forth between lawmakers continue to be a major driver of where the British pound will go. If the Brexit is a softer Brexit, that will, of course, help the British pound, as it is more favorable towards British businesses. Beyond that, there is also a lot of talk about the possibility of a delayed Brexit, which also brings down the possibility of a hard Brexit.

GBP/USD Video 31.01.19

We have recently broken above the 200 day EMA, and it is starting to curl to the upside. That is a bullish sign, and the 200 day EMA should offer a significant amount of support. We also broke above the down trending line of the previous descending triangle, so that, of course, is a bullish sign as well. Over the longer-term, it does look like we are trying to do what is known as a “golden cross”, when the 50 day EMA breaks above the 200 day EMA. We are obviously still a distance away from there, but it certainly looks as if what we are trying to accomplish with this latest surge higher.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.